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    Principles of Macroeconomics Study Set 12
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    Exam 19: Open-Economy Macroeconomics: the Balance of Payments and Exchange Rates
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    If Exchange Rates Are Fixed, Then a Decrease in Finland's
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If Exchange Rates Are Fixed, Then a Decrease in Finland's

Question 114

Question 114

Multiple Choice

If exchange rates are fixed, then a decrease in Finland's export prices causes


A) U.S. import prices to fall.
B) U.S. import prices to rise.
C) Finland's import prices to fall.
D) Finland's import prices to rise.

Correct Answer:

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